CNBC Stock Blog

2 Stocks With Growth Potential: Strategist

The S&P is fairly valued and it is becoming increasingly difficult to find cheap names, but here are a few stocks that still have room for growth, said Scott Black, president of Delphi Management.

“I think you have to be an individual stock picker,” Black told CNBC.

Black’s Recommendations:

Seagate Technology—“We’re in a tech refresh cycle and it will probably last another year and a half to two years,” he said.

“Seagate benefits from this. PCs are growing at about 13-15 percent, notebooks, games, they’re all doing well and Seagate’s earnings are exploding…Seagate has more cash then debt on balance sheet, so you have a bullet-proof balance sheet to go with it.”

Nexen —“It’s much cheaper than Suncor ,” he said.

“It’s a well-run company—the balance sheet’s conservative, the coverage ratio’s in tact and it’s an interesting way to play energy prices.”

  • Watch Black's Previous Appearance on CNBC (Dec. 14, 2009)

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Disclosures:

Adelphi Management owns shares of STX and NXY.

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